BILL ANALYSIS Ó
SB 1044
Page 1
Date of Hearing: June 29, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SB 1044
(Nguyen) - As Amended June 13, 2016
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|Policy |Business and Professions |Vote:|15 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill requires the Board of Barbering and Cosmetology (BBC)
to determine through regulations when a fine can be assessed
to an establishment owner and a licensee for the same
violation, authorizes the BBC to establish a payment plan for
citations that exceed $500, and makes permissive, instead of
requires, the BBC to deny a license or a license renewal if
fines are not paid, as specified.
FISCAL EFFECT:
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Negligible state fiscal impact.
COMMENTS:
1)Purpose. This bill is sponsored by the BBC. According to the
author, "This bill will not take away the responsibility of
the owner of the establishment, but will allow the BBC to
determine when the fine shall be assessed to both the
individual and the owner. This allows the BBC to hold
individual licensees to a higher level of responsibility, by
ensuring that the individual who has attended school and
passed the licensing examination is the first line of consumer
protection and therefore responsible for upholding the health
and safety laws of the BBC. This bill would allow the BBC to
work with individuals on a case by case basis to try and set
up a payment plan for any outstanding fines."
2)Background. The BBC is responsible for licensing and
regulating over 550,000 barbers, cosmetologists, estheticians,
electrologists, manicurists, apprentices, and approximately
41,000 establishments, including but not limited to, nail
salons, barbers, and hair salons.
Licensees working in an establishment can be an independent
contractor or an employee of the establishment. Independent
contractors are commonly referred to as "booth renters."
Booth renters are considered separate business entities
operating within the establishment and are responsible for
setting their own hours of operation, paying their own
required insurance, and maintaining a separate business
license.
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Because an establishment owner is responsible for the conduct
of all employees (regardless of booth renter or employee
status), if a violation is found by an individual, a citation
is issued to both the individual and the establishment owner.
During the BBC's last sunset review, in March of 2015, the
issue was raised regarding booth renter accountability, in
that establishment owners are being held accountable for the
deficiencies and subsequent violations of booth renters, and
individual licensees, not owners, should have to comply with
regulations and deal with enforcement actions. It has been
reported that establishment owners believe they already have
many laws and regulations to comply with and that if something
is cited at the station of a booth renter, the establishment
owner should not be forced to oversee that renter, and
potentially receive a citation and fine for that individual's
actions. Owners do not want to be held liable for the actions
of individuals who, in their eyes, are independent
contractors.
By requiring the BBC to establish through regulation when a
fine should be assessed to an individual and an establishment
owner or to an establishment owner or an individual, this bill
seeks to address the issue of establishment owners being fined
along with booth renters for the same violation.
In the BBC's 2014 Sunset Review Report, it was reported that
the health and safety infractions most often cited are
violations of rules regarding the disinfection and storage of
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tools, implements, instruments, and products. The top
non-health and safety-related violation is not properly
displaying establishment or individual licenses as required in
Title 16 California Code of Regulations Section 965.
Currently, licensees are not able to renew a license unless
they have paid all fines as required by the BBC. This bill
will revise the current prohibition for licensure renewal if
fines are not paid, and provide the BBC with discretion in
authorizing a renewal for applicants who may not have all
fines or citations paid as a result of a payment plan as
determined by the BBC.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081